ESMA approves Austria’s short selling ban

In particular, FMA notifies that the concerned measure bans any legal or natural person from entering into or increasing a short sale or a transaction other than a short sale which creates, or relates to a financial instrument and the effect or one of the effects of that transaction is to confer a financial advantage on a natural or legal person in the event of a decrease in the price or value of shares admitted to trading on the Regulated Market of the Vienna Stock Exchange (Amtlicher Handel; WBAH) and for which the FMA is the Relevant Competent Authority under Article 2(1)(j) of Regulation (EU) No 236/2012. The ban applies to transactions executed both on a trading venue or over the counter.

ESMA considers that less stringent measures could not adequately address the threat to confidence in the Austrian market. A temporary restriction on short selling according to Article 23 of the Regulation (EU) No 236/2012 would not address the threat to market confidence as it would remain applicable for a few days only and would be limited to short selling without covering any opening or increasing of net short positions.

The full notice is available at https://www.esma.europa.eu/sites/default/files/library/esma70-155-9604_opinion_on_fma_emergency_measure_under_the_ssr_all_shares.pdf

Related Posts

Previous Post
Initial securities lending impacts from the coronavirus (Premium)
Next Post
SEC issues temporary rules allowing mutual funds to borrow funds from affiliates and to make collateralized loans

Fill out this field
Fill out this field
Please enter a valid email address.

X

Reset password

Create an account